Bonds & Rates
Home›Bonds & Rates›Economy›US sheds 23,000 jobs in July as unemployment slips to…
US sheds 23,000 jobs in July as unemployment slips to 4.1%
July employment fell, with declines in education and retail trade, while healthcare hiring continued to grow, adding pressure to the case for Fed rate hikes later this year.
The US economy unexpectedly lost 23,000 jobs in July, according to data published by the US Bureau of Labor Statistics, a development that challenges President Donald Trump’s claims of an ongoing economic revival.
The unemployment rate ticked down to 4.1%, even as the overall job count fell. Friday’s figures will also feed into expectations for the Federal Reserve, which has been signaling it was preparing for a rate hike later this year.
The BLS said employment declined in local government education and the retail trade sectors, while it continued to grow in healthcare. The report also arrives as Republicans prepare for November midterm elections, with the economy a central issue for Democrats aiming to regain control of both houses of Congress.
The mix of weaker job growth and a lower unemployment rate is likely to complicate the debate over the pace of policy tightening, given the report’s implications for both Fed rate expectations and the political storyline around inflation and manufacturing.